Which of the following is true concerning the relationship between the marginal propensity to consume and the consumption function?
A)the larger the MPC,the higher the level of autonomous consumption
B)the larger the MPC,the steeper the consumption function
C)the larger the MPC,the larger the MPS
D)The smaller the MPC,the steeper the consumption function
E)The larger the MPC,the larger the level of autonomous consumption

Question

Quizplus · Accepted Answer

The marginal propensity to consume (MPC) determines the slope of the consumption function. A larger MPC means that for each additional unit of income, consumption increases by a larger amount, making the consumption function steeper.

Which of the Following Is True Concerning the Relationship Between